IL&FS: HC extends stay on temporary bail to former CEO

The Bombay High Court through video conferencing on Wednesday extended the stay on temporary bail granted to Ramesh Bawa, 58, former managing director and chief executive officer of Infrastructure Leasing and Financial Services (IL&FS) till April 30.

A single bench of Justice A.K. Menon was hearing a plea filed by Enforcement Directorate through special prosecutor Hiten Venegavkar after temporary bail was granted to Mr. Bawa and Hari Sankaran, 66, former vice chairman of ILFS by the sessions court.

The court allowed adjournment by Mr. Sankaran’s lawyer. On the last hearing on April 8, the same Bench had said the matter does not fall under “very urgent matter” and stayed both temporary bails.

On April 3, the lockdown court had considered the spread of novel coronavirus, ill-health and their old age and granted them bail for a period of 75 days on a PR bond of ₹30,000.

Mr. Sankaran and Mr. Bawa were arrested by the Serious Fraud Investigation Office (SFIO) in April 2019 in connection with IL&FS case for alleged irregularities that have resulted into severe crisis. The SFIO had claimed that IFIN extended loans to external parties, many of which had already begun defaulting. This included loans given to Siva Group, apart from those given to its own group of companies. The agency claimed that the top management knew of the probable stress because of the loan defaults. The IFIN management adopted “fraudulent practices” to not let these loans or credit facilities be classified as non-performing assets, violating many guidelines set by the central bank, SFIO stated in the complaint.

Source: Read Full Article